Industry Trends
Largest Transactions Closed
- Target
- Buyer
- Value($mm)
Advised Western Milling in their sale to the Western Milling ESOP Trust
Executive Summary
M&A activity in the Food & Agriculture sector continued its downward trajectory in Q2 2025, with 394 closed transactions (LTM), down from 409 in Q2 2024 and 617 at its recent peak in 2021. Valuation multiples also declined, with the median TEV/EBITDA at 9.42x and TEV/Revenue at 1.38x, signaling investor caution amid margin pressures and a higher cost environment. Strategic buyers led the market, comprising 81% of deal activity, while financial buyers remained focused on niche and branded assets. Despite headwinds, select high-value deals highlight ongoing appetite for scaled, stable targets in branded, beverage, and protein categories.
Market Dynamics
Valuation pressures remained evident in Q2 2025 as buyers adapted to ongoing cost inflation and conservative lending conditions. Median TEV/EBITDA fell to 9.42x, while revenue multiples settled at 1.38x—down from 2.15x at the 2021 peak. Investors prioritized earnings quality over top-line growth, with premium valuations focused on assets with strong brands, operational scale, or critical roles in food production and distribution.
Buyer Landscape
Strategic Acquirers: Strategic buyers dominated Q2 2025 activity, comprising 89% of transactions (318 of 394). Key acquisitions included PepsiCo’s $1.95B purchase of VNGR Beverage and Global Eggs’ $1.1B acquisition of Hillandale Farms, highlighting interest in beverage and protein verticals.
Financial Buyers: Financial buyers accounted for 11% of deal volume, focusing on branded and growth-oriented assets. Notable investments included Savory Fund’s acquisition of Bonrue Bakery and KarpReilly’s backing of Rowdy Mermaid Kombucha.
Industry Comparison
The Food & Agriculture sector underperformed high-growth verticals like technology but remained more resilient than cyclical sectors such as retail and discretionary consumer goods. While global M&A volume is expected to decline modestly in 2025, food-related assets continue to attract steady demand due to their essential nature and defensive market positioning.
Geographic Expansion
Top U.S. States: California led with 58 transactions, followed by Illinois (23) and Texas (21), underscoring their concentration of food producers, processors, and innovation hubs.
Cross-Border Trends: Cross-border appetite remained strong, with global buyers—especially from Canada and Europe—continuing to target U.S. food and beverage assets for scale and market access.
Notable Transactions
Largest Transactions Closed
| Target | Buyer | Value |
| VNGR Beverage LLC | PepsiCo, Inc. | $1.95B |
| GetGo Café + Markets | Alimentation Couche-Tard Inc. | $1.60B |
| Hillandale Farms of Pa., Inc. | Global Eggs S.à r.l. | $1.10B |
| Chef Boyardee brand shelf-stable products line of Conagra Brands, Inc. | Hometown Food Company | $600M |
Other Strategic Buyer Transactions Closed
| Target | Buyer | Value |
| Echo Lake Foods, Inc. | Cal-Maine Foods, Inc. | $258M |
| TH Foods, Inc. | Kameda Seika Co.,Ltd. | $221M |
| Better Choice Company Inc. | SRx Health Solutions Inc. | $97M |
| Insomnia Cookies, LLC | Mistral Capital Management, LLC; Verlinvest Usa, Inc. | $75M |
Other Financial Buyer Transactions Closed
| Target | Buyer | Value |
| Williams Distributors, LLC | KDSA Investment Partners | n/a |
| Bonrue Bakery | Savory Fund | n/a |
| Maple Donuts, Inc. | SPC Management Co. Inc.; Partners Capital Investment Group, LLP; Constitution Capital Equity Partners LP | n/a |
| Juanitas Foods | Apex Investments Management US, LLC | n/a |
Source S&P Capital IQ as of 7/1/2025 and PCE Proprietary Data
Emerging Trends
Key trends shaping Food and Agriculture M&A:
- Investment in Niche Processors
Mid-market acquirers are snapping up local, small-scale food processors—such as specialty milling plants and plant-protein extractors—driven by demand for regional distribution and culinary diversity.1 - Eco-Conscious Packaging Consolidations
As sustainability and recyclability mandates tighten, acquirers are targeting firms in compostable and reduced-waste packaging. M&A activity is accelerating among packaging manufacturers aligned with evolving USDA/FDA requirements.2 - Food Production Sector Revival
With projected farm income up ~26% YoY in 2025 and easing input costs, food production M&A accelerated, as both PE and strategic buyers pursued bolt‑on and scaling opportunities.3 - Tariff & Trade‑Driven Vertical Integration
Rising tariffs and import volatility spurred deals aimed at reducing supply chain exposure—notably in grain, sugar, and inputs—prompting defensive acquisitions within domestic agri‑food players.3
Outlook for Next Quarter
Opportunities: Traceability and food safety software will draw considerable investor attention, especially among tier‑1 retailers enhancing ESG and regulatory transparency.4
Risks: Ongoing macro headwinds (tariff uncertainty, input cost spikes) may destabilize mid-market M&A momentum.5
Predicted Activity: Expect expanding roll-up strategies, focusing on regional dairy processors and high-protein/gut-health product lines (e.g., kefir, Greek yogurt), leveraging growth in consumer wellness trends.6
PCE Transactions
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